Little fixes boost home sales

To make more money, homeowners often times have to spend money.
MSN tackled the topic of home improvements this week in their real estate blog, Listed, which laid it on the line: Buyers will pay more for aesthetics.

 

Real estate agents and sellers prioritize repairs and aesthetic improvements that prospective buyers are likely to notice, such as upgrades to flooring, cabinets, fences and doors, says Matt Ehrlichman, chief executive of Porch, which tracks home-improvement projects.

"Just doing these minor things will help your house sell quicker and typically for more money," says Brad Carlson, a real estate agent with Better Homes and Gardens Real Estate Gary Greene in The Woodlands, Texas.

Carlson once had the listing for a three-bedroom home with dated brass fixtures throughout. The house sat on the market for more than two months with no offers until the seller finally agreed to swap the fixtures for more modern ones. Two days and $800 in new fixtures later, the home sold close to its listing price at $214,900.

The Porch analysis also tracked home improvements made six months after the homes sold. Over this period, the new homeowners took on meatier projects, such as water-heater replacements, plumping updates and sewer repairs, according to the data.

These projects don't appeal to potential buyers the same way that features like granite countertops do, says TJ Paradise, a real estate agent with Sotheby's International Realty in West Hollywood, Calif. Paradise estimates that sellers in his market spend $3,000 to $4,000 before selling their home, and new buyers invest roughly $20,000 after the purchase.

 
In rare instances, home sellers make hefty investments in improvements. Dan Dolan, a Chicago-area architect, is designing and will oversee construction of a roughly $150,000 addition to a home in New Jersey. The luxury home has a poor layout — the kitchen, dining room and living room are all on different levels — and has been on the market for more than a year. The home seller, who Dolan declined to name, is listing his home for $1.5 million.

Still, Dolan says homeowners seldom ask for full-scale renovations or additions right before listing their homes. "Brighten, update and repair," he says. "It's all the little things that are actually going to sell your house."

What every veteran should know about VA loans

Fans of late-night TV will recall the infomercials of a few years ago, hawking zero-down loans. Those loans, along with loans requiring no documentation, were being handed out like candy to anyone who applied, and were largely blamed for the mortgage industry implosion.

In the wake of that mess, mortgage lenders tightened standards. Lenders began demanding that homebuyers needed some skin in the game - a healthy down payment - to make them think twice about defaulting on the loan and in the process, zero-down loans became a memory.

Today, one of the extremely limited choices if you're seeking a mortgage without a down payment is the Department of Veterans Affairs (VA).

"The VA loan is the best mortgage around," according to Envoy Mortgage's Nathan Raich. "Not only will you not be required to make a down payment, there's also no mortgage insurance requirement, which makes the loan even less expensive. Finally, borrowers typically get a lower interest rate with a VA mortgage than with a conventional loan," he concluded.

Eligibility Requirements

Eligibility for a VA-backed loan includes what the VA calls "suitable credit" and sufficient income to make your payments every month. You'll also need a valid Certificate of Eligibility (COE), which in many cases your lender can obtain for you.

Separation from the service must have been under conditions other than dishonorable. Additionally, you must plan on occupying the home as your personal residence.

VA Entitlement

When buying a home for the first time, many veterans are confused by the process. One of the most confusing aspects of the loan is the VA entitlement. Basically, the entitlement is the amount of money that the VA agrees to pay the lender if you stop making payments and default on the loan.

Here comes the confusing part: The basic entitlement amount is $36,000, but there is a secondary entitlement as well - $68,250, according to Veterans United. The secondary entitlement kicks in only if the purchase price of the home you wish to buy exceeds $144,000.

How they come up with these amounts only causes more confusion, but it has to do with the amount that the VA guarantees, which is one-fourth of the loan amount.

Once you use the entitlement, it can't be used again until the loan is paid off or another veteran assumes the loan and uses his or her entitlement.

Loan Limits

Although the VA doesn't set loan limits, since it has limits on its liability (one-fourth of the amount of the loan), lenders may set a cap on the amount a veteran can borrow.

They typically set the cap, for a loan with no down payment, at four times the veteran's available entitlement as long as he or she otherwise qualifies for the loan, according to the Veterans Administration.

The Home-Buying Process

Other than VA-specific paperwork, purchasing a home using a VA loan is very much like purchasing a home with a conventional loan. Your first step will be obtaining loan preapproval. This is the step that requires your COE. You'll find a chart listing service requirements that need to be met for obtaining a COE at the VA website.

Once you have your preapproval letter in hand, it's time for you and your real estate agent to begin searching for a home. When you find a home, your real estate agent will insert a contingency in the purchase agreement stating that your offer is subject to final approval for a VA loan and a successful VA appraisal.

Your lender will obtain a VA number for your loan, which is used to track your loan application. The lender will also send a VA form to a state-licensed VA appraiser who will determine the home's current market value.

The VA has what they call minimum property requirements, or MPRs. Here are a few items the appraiser will be looking for:

• Adequate space for living, sleeping, cooking and dining, and sanitation.
• The safety of all mechanical systems. They must also have reasonable future utility.
• Hot water and a continuing supply of safe drinking water.
• A safe way to dispose of sewage.
• The roof must be free of leaks.
• Adequate attic access and ventilation.

These are the basic MPRs and, although it seems as if the appraiser is giving the home a thorough inspection, the appraisal does not replace the need for a home inspection.

The best place to get answers to your questions about a VA loan is at your lender's office or by calling a Department of Veterans Affairs Regional Loan Center.

Scoping out a Home: Is it the right fit?

Homebuyers enter the process with one of two mindsets. There are those who know what kind of house they want – the number of bedrooms and bathrooms, the type of kitchen and maybe whether or not they want a yard. Then there are those who know where they want to live, such as a specific school district or neighborhood, but haven't completed a wish list of home features.

Seldom does a homebuyer tell her real estate agent that she wants a "three-bedroom, two-bathroom home with a gourmet kitchen, a fireplace and a pool in the backyard, located on J Street in the Mountain Shadows neighborhood."

While it's important for your real estate agent to know what features you want in a home, "location, location, location" is just as important, important, important.

Even if you know exactly what you want in a house and perhaps have one picked out, it's important to scope out the neighborhood before committing fully to buying.

Don't Believe What You Hear

Especially when you are new to an area, it's easy to believe what residents tell you about the various neighborhoods. "When I was getting ready to move to Las Vegas 10 years ago I went online and read about the various neighborhoods," recalls Veronica Thomas. "The consensus seemed to be that Green Valley and Summerlin were the best places to live."

On a weekend trip to check out the areas in person, Thomas found that neither area suited her. "Green Valley was far too congested for me," she said. "Summerlin was way too far from my job on the Strip. I'd heard that both had low crime rates, but they weren't that much lower than some other areas that I found much more attractive," she concludes.

There is nothing quite like first-hand information. If good schools are important to you, do the research yourself instead of relying on what others consider "good."GreatSchools.org lists schools' test scores and features reviews from parents.

Crime statistics can also be found online. The FBI offers a nationwide Sex Offender Registry on their website and Neighborhood Scout claims that they "reveal the safety from crime for every neighborhood in America." Finally, call the police or sheriff's department in the area for more information on crime statistics.

Google maps will allow you to map a route from the new house to your job, to a particular school, or to the nearest shopping center and kick back the mileage and a rough estimate of the time it will take to get there.

A lot of your preliminary neighborhood research can be done online, but it's not a substitute for actually checking out the neighborhood in person.

Drive It

Number three on the list of the five biggest mistakes homebuyers make when choosing a neighborhood is underestimating or ignoring the commute, according to MSN Real Estate. Their advice is to actually make the commute during normal commute hours to see if it fits your lifestyle.

Drive through the neighborhood at different times during the day and evening, on both weekdays and weekends, looking for anything that may be considered an annoyance. Music blasting from a teenager's open bedroom window when you're trying to unwind after work may make you wonder why you bought a house in that neighborhood in the first place. Is the house under the airport's flight path? Kids – and all that they imply – may be a blessing or a curse, depending on how you feel about them.

If you don't drive, walk the neighborhood. Locate the nearest public transportation stop and see for yourself what the walk is like to the store and other local conveniences.

Check Municipal Records

Finally, check the neighborhood and surrounding area for anything that may impact the home's value. Look for:

A high number of foreclosures nearby.

Developments in the works.

Upcoming zoning changes.

Sure, it's important to fulfill those dreams of the perfect house for you. But the bigger picture - a suitable neighborhood in an area that fits your lifestyle – is just as important to your quality of life.

Living in Escondido: Beauty, Fun & Affordability

Sitting in a shallow valley just north of San Diego, Escondido is a serene environment surrounded by majestic mountains.

With so much to offer, the sector is only complimented by its close distance to San Diego, the second most famous city on the West Coast following Los Angeles. Between the beautiful scenery, idyllic locale, affordable home prices with generous-sized lots and much more, Escondido is a great place to live.

More than 30 neighborhoods make up the Escondido municipality, all of which are gorgeous, with freshly cut lawns and large lovely homes lining the streets.

Downtown Escondido is a prime location for premier dining and shopping, with specialty shops and eateries filling the sector. Whether grabbing a delicacy at Delight of France or having a facial at The Loft Hair Design & Skincare on Grand Avenue, residents enjoy the finer things in life here. Old Escondido, made up of mostly single-family houses, is a great place to live. With residents of all ages, the district is diverse with something always happening for both the young and old. No matter what part of town you live in from the highly-sought-after 92029 zip code to East Escondido with its stately developments, you are sure to love the entire environment.

The Escondido Union School District serves approximately 20,000 students in 17 elementary and five middle schools. For high school, youth attend the Escondido Union High School District, which serves more than 8,500 students in its comprehensive campuses that include Escondido, Orange Glen and San Pasqual High Schools among others. Of course, area students can train in any of the private elementary and high schools in the area that offer religious and specialized training.

Education proves to be part of the Escondido environment as stats prove more than 20 percent of residents have a bachelors or master's degree.

With the cost of living at seven percent less than the state of California, large lots, homes with ample square footage, buying and living in Escondido is a no brainer.

With so much to do in and around the area, locals live the good life in Escondido. Between the town's parks, playhouses and eating parlors and the close by city of San Diego, residents can stay in the region or drive just 35 minutes to the famous metropolis for fun.

With so much to do in and around the area, locals live the good life in Escondido. Between the town's parks, playhouses and eating parlors and the close by city of San Diego, residents can stay in the region or drive just 35 minutes to the famous metropolis for fun.

The town boasts 15 parks, not to mention the world-famous San Diego Zoo Safari Park is located in Southeast Escondido where you can view the animals with personalized and up-close safaris. Many make the most out of seeing shows at the California Center for the Arts located just across historic Grape Day Park and City Hall. Events in Escondido keep locals busy as thousands attend the Downtown Escondido Farmer's Market or the seven-month-long Cruisin' Grand weekend street fair, as well as the numerous city events and fairs hosted in Grape Day Park and along popular Grand Avenue.

ESCONDIDO FUN FACTS

• As of 2012, Escondido's population is 143,911 people. Since 2000, it has had a population growth of 9.86 percent.

• The median home cost in Escondido is $261,500. Home appreciation the last year has been 2.41 percent.

• Compared to the rest of the country, Escondido's cost of living is 26.20% Higher than the U.S. average.

• Ranked #2 Drought-Riskiest Cities

• Ranked #2 Best-Rested Cities 2011

• Ranked #2 America's Most Playful Cities

• Ranked #3 Sleep in the City Study

• Ranked #3 America’s Best (and Worst) Cities for Dating

A St. Joseph Burial: Calling in a miracle to sell a home

I dug a hold and placed a man inside today.

Now, don't be shocked. It isn't what you think, but certainly, it wasn't what I woke up expecting to do.

Today, in admittedly, a very Catholic spiritual faithful sort of way, I buried a statue of St. Joseph near a For Sale sign in front of a home that I have been trying to help sell for a co-agent.

For four weeks, this beautiful, well-kept 4 bedroom, 2 bath home has been on the market in South Escondido. Every week, I have hosted an Open House no less than three times ... each week. At least one to two times at lunchtime on weekdays and every weekend. The price is right, not necessarily competitive, but it is below the home's appraisal and still it hasn't sold. The home is on all the major sites, Zillow, Trulia, the MLS, Realtor.com and the like. It is well-staged and everyone who walks in has nothing but glowing, positive things to say about this home. Yet, not even one single offer has been made.

During today's Open House, my broker and the home's listing agent dropped off a St. Joseph statue. I think for fun, but my Catholic faith made me sit and stare at this statue and wonder. I searched Google and read up on St. Joseph, the patron saint of family, home sellers and realtors, among others. 

Apparently, the petition to Jesus' earthly carpenter father is supposed to bring a sale when you bury him in the property's yard and of course, say a prayer. I even might throw in a novena to St. Joseph, just in case that might speed the offers along.

There were a variety of suggestions concerning how to bury St. Joseph, where to bury the little statuette and even what prayers to say, but I chose the most commonly known traditions.

For his burial site, I picked the front yard near the For Sale sign. I buried him about six inches from the surface and placed him upside down. I said two prayers. The first I said before the burial got underway. It was of my own wording in which I requested his divine intercession. After I was done well ... begging, we started the digging. I found a trowel and went to work in their front flower bed near the For Sale sign. He went in headfirst. It felt, honestly, quite disrespectful to this very revered man who helped make Jesus well, priestly, but I was going on faith. Like George Michael and my priest say, "You got to have faith."

Afterward, we read the standard prayer to St. Joseph. I'll put it below just in case any realtors or home sellers want to give a St. Joseph burial a shot.

I went inside and washed my hands and got the dirt out from under my fingers. Less than five minutes later, a couple walked in and although they didn't leave saying their offer would be in tonight, it gave me hope.

Maybe, just maybe, St. Joseph heard my prayers and he would bring this home's next family to the doorstep.

God willing, my next post will be an update to this one declaring St. Joseph burials to be the sure way to get a home sold.

The Top 10 Hottest Markets

Fascinating news this week out of Realtor.com.

Where are homeowners celebrating? Where are prospective buyers driving up prices? To answer these burning questions, we looked at markets with the largest year-over-year median home price increases.
According to Realtor.com data, Stockton, Calif., topped the list with a whopping 38.9 percent increase in median price in the last 12 months. The other nine metropolitan areas in our top 10 all notched gains above 20 percent, making them the hottest places to buy. Understandably out of the 10 hot hot hottest places to buy, six of them are in California with three being in our own backyard of So Cal. That's right, everyone seems to know to Come Home to So Cal.

10. Denver

• Square feet: 2,794
• Bedrooms: 5
• Bathrooms: 2
• Price: $520,000
• City's median home price: $329,000 (+19.6 percent since 2013)

Spanish style in the Mile High city? Why not? This charming casa is listed at $520,000 and offers details aplenty for any Denverite looking for something different.

9. Los Angeles

• Square feet: 3,200
• Bedrooms: 4
• Bathrooms: 3
• Price: $1.895 million
• City's median home price: $449,999 (+20 percent)

This modern stunner in the Hollywood Hills is listed well above the median at $1.895 million, but you’ll be comforted by the fact that you’re buying into a booming market in Southern California.

8. Bakersfield, Calif.

• Square feet: 2,036
• Bedrooms: 2
• Bathrooms: 2
• Price: $183,990
• City's median home price: $179,999 (+20.1 percent)

What can you get on the streets of Bakersfield for the median price? How about a brand-new home?

7. Fresno, Calif.

• Square feet: 1,860
• Bedrooms: 3
• Bathrooms: 2
• Price: $369,500
• City's median home price: $229,000 (+21.2 percent)

Fresno saw a healthy jump in home prices in the past year. You’ll jump when you see the price on this newer home in a gated community. Listed for $369,500, the house offers three bedrooms and two bathrooms.

6. Orange County, Calif.

• Square feet: 7,350
• Bedrooms: 7
• Bathrooms: 5.5
• Price: $3.398 million
• City's median home price: $599,900 (+23.7 percent)

In Orange County, we picked a mansion that would make any "real housewife" happy. This huge home in Anaheim Hills, Calif., is listed at $3.398 million, and for that price tag you will have three acres to play on.

5. Riverside, Calif.

• Square feet: 1,536
• Bedrooms: 4
• Bathrooms: 3
• Price: $294,900
• City's median home price: $292,800 (+24.6 percent)

Coming in right near Riverside’s median price, this cute triplex built in 1920 allows you to play landlord.

4. Detroit

• Square feet: 3,093
• Bedrooms: 4
• Bathrooms: 2 full, 2 half
• Price: $129,000
• City's median home price: $119,900 (+26.3 percent)

Detroit’s problems have been well-documented, but the median home price made a stunning leap in the past year. Even with the big gains, this colonial charmer has been listed for only $129,000.

3. Reno, Nev.

• Square feet: 2,088
• Bedrooms: 3
• Bathrooms: 2.5
• Price: $484,000
• City's median home price: $259,900 (+26.8 percent)

At $484,000, this home at 3850 Royer Court is above Reno's median price. But the contemporary style and brilliant city views might be worth the splurge.

2. Las Vegas

• Square feet: 1,889
• Bedrooms: 4
• Bathrooms: 2.5
• Price: $179,000
• City's median home price: $177,500 (+26.9 percent)

We found a Vegas home right around the median price. What will $179,000 in Sin City get you? You will find a home far from the bright lights of the strip at 5128 Blossom Ave. The two-story home offers about 1,900 square feet of living space with four bedrooms and 2.5 bathrooms.

1. Stockton, Calif.

• Square feet: 5,183
• Bedrooms: 4
• Bathrooms: 6
• Price: $599,000
• City's median home price: $248,600 (+38.9 percent)

This home on 415 W. Park Lane is roughly double the median price of a Stockton home, but its size and pedigree merit a look from anyone hoping to capitalize on the red-hot Central Valley real estate market.

Up or Down? Real Estate Market Forecast for 2014

Whether you are a prospective buyer or seller, the question is the same - Should I wait to... buy/sell?

Buyers typically are hoping prices will inch downward again, while sellers are trying to get the most money out of their home sale. Both absolutely valid concerns.

Recently during a real estate seminar at the San Diego Association of Realtors in Kearney Mesa, four seasoned real estate professionals set out to answer these concerns.

Overwhelmingly, they predict home prices will rise in 2014 by four to six percent, while in 2015 they will rise at an even greater rate.

"Buy now before the rocket takes off," said SDAR Board of Directors President Leslie Kilpatrick who works with Willis Allen Real Estate.

Very little inventory and a large amount of buyers make it a seller's market right now, at least in San Diego County, and although it seems like bad news for buyers, there is a silver lining.

Interest rates are still at low rates. It might not be the average 3.34 percent seen in 2013 for the average 30-year-fixed mortgage, but at the current 4.53 average, it is still low in comparison to the historical average for a 30-year fixed is about 7.5 percent.

Not to mention, rents are expected to rise by a drastic 20 to 30 percent by the end of 2014, according to Charles Hoffman President with ACI Apartments and speaker at the SDAR seminar.  

All in all, the time to act is now. These real estate magnates all agreed we, real estate agents, must encourage buyers and sellers alike to get off the fence before prices go up even further because regret isn't a feeling agents want you to have after our work together is complete. We want you to enjoy the buyer and/or selling experience and be happy with your choices and with the guidance we provided.

Good luck in your real estate path wherever they lead.